EasyJet PLC (LON:EZJ), Capita PLC and Dixons Carphone PLC (LON:DC) look set to topple off the FTSE 100 when a reshuffle of London indices is announced tomorrow.
Based on Friday’s closing prices, a spokesman for the London Stock Exchange said the companies are likely to be demoted to the FTSE 250.
EasyJet has seen its market capitalisation fall 40% over the past year after issuing several profit warnings as the impact of a weak pound and terror alerts hurt foreign travel.
Last month the budget airline said the weakness of sterling is expected to have a £105mln impact on profit before tax for 2017.
Outsourcing group Capita has downgraded its profit forecasts twice in three months at the end of 2016. The company said outsourcers have struggled since June’s Brexit vote as clients have delayed making decisions on investment and contracts due to the uncertainty.
“The group has seen its share price remain under pressure since the Brexit vote, as the market highlighted concerns over future contracts and their length, which has dropped from an average of eight years to seven,” according to The Share Centre.
Dixons Carphone’s value has declined recently as a result of competition within the sector, particularly from Amazon, The Share Centre added.
In December, the company warned of uncertain times ahead in light of Brexit as it reported a 19% increase in pre-tax profits to £144mln in the six months to the end of October.
The demotion of the three companies to the FTSE 250 is likely to see CMC Markets PLC (LON:CMCX), International Personal Finance PLC (LON:IPF) and Marshalls PLC (LON:MSLH) kicked off the index and downgraded to the FTSE Small Cap list, the LSE estimated.
On the upside, Polymetal International PLC (LON:POLY), Rentokil Initial PLC (LON:RTO) and Scottish Mortgage Investment Trust PLC (LON:SMT) are eligible for possible entry to the FTSE 100.
Possible candidates for joining the FTSE 250 include Syncona Ltd (LON:SYNC), Sanne Group PLC (LON:SNN) and TBC Bank Group PLC (LON:TBCG).
The final decision on the reshuffle will be determined by today's closing prices, the LSE said.